In communist Cuba, the tax man cometh

Free-market reforms now require all citizens to pay

Published: 11/28/2012 at 11:17 AM

(REUTERS) Most Cubans have not paid taxes for half a century, but that will change under a new code starting January 1.

The landmark regulations will change the relations of Cubans with their government and are a signal that market-oriented reforms, launched since President Raul Castro succeeded his brother, Fidel Castro, in 2008, are here to stay.

The recently published code constitutes the first comprehensive taxation in Cuba since the 1959 revolution abolished just about all taxes.

In the 1990s after the collapse of the Soviet Union, the country’s main benefactor, the Cuban government imposed a few scattered taxes, but mostly preferred to maintain low wages so it could fund free social services.